Humber/Ontario Real Estate Course 4 Exam Practice

How should a salesperson assist a seller requiring both a listing price and valuation for a divorce action?

1. Setting the listing price and conducting a form appraisal

2. Determining a narrative report for appraisal

3. Setting the listing price and referring the appraisal to an expert

4. Advising the client to contact a legal advisor

5. Establishing both prices with another registered salesperson

6. Consulting with a financial advisor

The correct answer is: Setting the listing price and referring the appraisal to an expert

The correct approach for a salesperson assisting a seller in need of both a listing price and a valuation for a divorce action involves setting the listing price while also referring the appraisal to an expert. This is important because the listing price set by the salesperson is based on market conditions and the specifics of the property, which allows for a practical approach to selling. However, divorce proceedings often have specific legal and financial implications that require a formal appraisal conducted by an accredited professional. Referring to an expert ensures that the valuation is accurate, impartial, and appropriate for legal purposes, which is essential in supporting the seller's needs during a divorce. Other strategies may not fully address the necessity of an expert's opinion in a legal context, as simply advising a client to seek legal counsel or a financial advisor does not provide the immediate assistance the seller requires regarding property valuation and sale readiness. Similarly, determining narrative reports, consulting with another registered salesperson, or conducting a form of appraisal without proper qualifications might lead to questions about the validity and reliability of the valuation in the divorce proceedings. Thus, the combination of setting the listing price and engaging an expert is the most effective means of assisting the seller.